GBP/USD Signal Update
Yesterday’s signals were not triggered and expired.
Today’s GBP/USD Signals
Risk 0.75%.
Entries must be made before 5pm London time today.
Long Trade 1
Long entry following bullish price action on the H1 chart upon the first touch of 1.6684.
Put a stop loss 1 pip below the local swing low.
Adjust the stop loss to break even when the price reaches 1.6730.
Take off 75% of the position as profit at 1.6730 and leave the remainder of the position to run.
Short Trade 1
Short entry following bearish price action on the H1 chart upon the first touch of 1.6812.
Put a stop loss 1 pip above the local swing high.
Adjust the stop loss to break even when the price reaches 1.6760.
Take off 25% of the position as profit at 1.6760 and leave the remainder of the position to run.
GBP/USD Analysis
Yesterday was a very quiet inside day, so there is no reason to change the new bearish bias. Despite the inside day, it is also likely that today will be a quiet day for this pair as the market awaits important news announcements on Thursday.
Nevertheless there are two important levels to watch that might get hit in the meantime. The flipped resistance level above us at 1.6812 looks very good, especially as it is confluent right now with the broken bullish trend line. This would be an excellent place to look for a short, especially if the price manages to spike up there after the U.K. news announcement this morning. Below us there is support at 1.6684 which is also confluent with today’s GMT S3 pivot point which might provide an opportunity for a conservative long.
The best potential trade would be a short from around 1.6812.
There should be more potential from short trades than long trades.
At 9:30am London time there will be a release of U.K. Construction PMI data which may affect the GBP. There is no important data due from the U.S.A. It is likely to be a quiet day for this pair, especially as the market awaits the Bank of England rate decision and statement next Thursday.